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Mad Money

News/Business. (2012)

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Cramer 9, Us 8, Boeing 6, Washington 5, Jim 5, Dave Cote 3, Florida 3, Honeywell 3, United States 2, Pennsylvania 2, California 2, Cisco 2, Virginia 1, Australia 1, Pittsburgh 1, Dbax 1, Chesapeake 1, Eog 1, Ge 1, Lng 1,
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  CNBC    Mad Money    News/Business.  (2012)  

    November 13, 2012
    11:00 - 12:00am EST  

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i'm jim cramer and welcome to my world. you need to get in the game. >> firms are going to go out of business and he's nuts. they're nuts. they know nothing. i like to say there is a bull market somewhere. "mad money" you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to help you save some money. i'm trying to educate you. call me at 1-800-743-cnbc. why aren't we getting crushed? why isn't the market being laid to waste by the big issues in washington? ♪ >> today the dow closing down 59
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points and the nasdaq declining. isn't it logical to ask why we have not been clubbed into bearish submission considering the radical changes and spending cuts that can stop any economy in it's tracks. [ sound of train ] >> i mind why we aren't pummeled instead of being unchanged like yesterday is because there are factors that need to be flushed out on this show. ones that may explain why things aren't going the intuitive way. the market is hopeful a deal can be reached. i find this hope somewhat incredible given the terrible track record of congress and the president. and the huge goal between the parts. after all, if you are president obama, you believe the election is over and your campaign
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received a ringing endorsement. but if you are a republican, you have to believe that those republicans that do not want to rise above politics are banking on massive declines in spending to wreck the economy. if you are a republican, in permanent campaign mode, i'm sure one of your advisers is saying that going off the fiscal cliff might be the best thing in terms of the midterm election. worse, if you are a democrat, you might think the defense spending cuts could be coming and you might think that is good. there is a sense that those who
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want to stymie the president are going to be targeted by other politicians, business people, and yes, they will be targeted by us. you stand in the way of a deal, your principle is greater layoffs and lower standards of living and your principle is lower stock prices. the pressure of the business people putting on the government you get a deal spearheaded by our guest dave cote is greater than anything i have seen in our life and it is growing. that is why the optimism may not be misguided. those who argue that going over the cliff is good news are being outed as people who want a weaker, poorer nation. a weaker, poorer nation. not people who want to put a
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stop to profligate government. and let's go there, i'm not liam neeson, i'm not even confused with it. if you don't rise above politics, i will find you and put you in the "mad money" wall of shame. selling is something that doesn't come all that easy to people. there is no panic in the air yet. and so far the worries about the fiscal cliff have eluded many who don't understand it. even though the people that watch cnbc know plenty. some don't know what to panic about. i know, no one ever made a dime panicking. we know from the numbers and the earnings report that we got,
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people are spending increasing amounts on their homes. if we do fall off the fiscal cliff, this will end. there is no way we won't have a new spike up in foreclosures. the bankers ceos reductions in pay are going to happen if they don't get this done. those people don't know what awaits them. third, investments should go down in value. people buy stocks because they get a return versus cash or bonds because interest from cash or bonds is lower than post tax dividends or stocks. they should sell some of those stocks. they should take a chance that it goes to the higher income rate. however, a great deal of the
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stock owned by individuals are better than bonds. and the tax return of dividends is irrelevant. they are natural buyers and take up the slack on a big move down. they cushion us. others shouldn't sell because the dividends of others are so high. how would you feel about passing up on the gain of home depot? which brings us to the last and most important reason why we aren't crashing. the prospect of being out of the market the day we get a
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resolution, even a sub par one, remember what i said, that a known bad outcome is better than almost anything that is unknown. see, if you miss the moment of a deal, though, you miss the gains that we are going to get for the rest of the year. let me give you a couple of contrasts. we've had some stalemates before. the worst one that i have ever seen in 1990 was kuwait. that was a stalemate that you wanted to see. in the end you wanted to buy before the war started. you had a date it was going to begin. until then, it was a perfect moment for sellers. how about the summer of last year? people fled a shutdown caused by the debt ceiling problem. you didn't know when it would be solved. lots of people think this fiscal cliff issue is like the debt ceiling fight. and that is why i'm telling you, you can take some profits off the table.
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don't think that selling all of your stocks makes any sense. this is one where you have to figure politicians will rise above politics. new year triggers 600 trillion dollars in new taxes. they still beat saddam hussein. we crush those who wanted to make it so that our kids can't afford to go to college so they win re-election. your goal is nothing short of finding and creating the bear market everywhere. and that is unforgivable in the world of "mad money" which is why the wall of shame awaits all
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who stand in the way of a deal. clark in florida. clark? >> jim, a big first time booyah from the conch republic of florida keys. >> i love the fish, what's up? >> jim, i love you. you have shown me to go for chesapeake. it looks like the united states is getting back in the oil business. who should i be looking at? >> if you want to know who is the best finder of oil, eagle ford and bakken, those are the two finds for eog. let's go to jordan in pennsylvania. >> hey jim, big booyah from pittsburgh, pennsylvania. >> i'll tell you, that tastes like iron city beer. it tastes like coming home. >> i got weight watcher's. how do you feel about their
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recent change in management? >> i don't want to be greedy. i think you are greedy if you hang on to wtw. you know what, let's go to wayne in virginia. >> love your show. would like your take on moly corp. >> accounting irregularities equal sell. i understand from the papers that there are issues there involving an sec investigation. you close your eyes and you sell because there is not much to it. we have good things holding us up. understand this, we will not
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tolerate those who wish to crush your nest egg. we will not let people sink below. let's just say there is a special annex that i'm adding to the wall of shame. you will lose the election. "mad money" will be right back. >> coming up. cooking with gas, clean energy fuels took another step today and investors filled up on the stock. after falling from its highs earlier this year is it time to hop back onboard? we have the exclusive on today's headlines. and later, cliff notes. time is running out to resolve our fiscal follies. cramer is taking action. tonight dave cote talks about his role in the fix the debt campaign. his take on whether we can avoid the fiscal cliff. plus, ready for takeoff? shares of boeing have been caught in the holding pattern this year. could the flight path be changing or will fiscal cliff
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concerns keep it grounded? cramer is reading the flight plan in tonight's edition of off the charts, all coming up on "mad money."
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it has become clear that with the obama reelection, the fuel for service vehicles probably not going to be aided by washington for at least the next four years. they nat gas stocks may have reached expectations so low they can rally.
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last night this company got really good news. clean energy is buying two lng plants from general electric. these plans will be able to produce enough to support a network of 70 fueling stations at truck stops along the interstate. clean energy is becoming for integrated which would give them an edge down the road. let's find out more about how the company is doing and where it is headed.
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talk about what this means for your company and also for long haul truckers across the country. >> it important for us. we got an endorsement. and they know, as you know, they know a lot about natural gas all around the world. it is very important that they are buying some equipment for us. but they are a partner now. we are excited about it. >> what do these things look like? we hear about floating plastic shells. >> right.
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these i would say are more like a big gas plant. lots of plumbing. a few acres. you are making it cold and turning it into lng. we have gas plants where we are knocking out the heavies. so it is not a 1500 foot ship like shell is doing off of australia. we have -- we will do what i told you we are going to do. the 78 fueling stations border to border and coast-to-coast. every 250 miles they will have these truck stops in place. every 250 miles, it is not perfect, at this point, but we have taken away the point that you can't move goods across the country and in these important regions.
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you don't want to haul lng more than 250 miles. but really, what we have talked about, we see them doing ten of these plants. >> why don't you want to do it for more than 250 miles? >> we have very good economics. these heavy duty trucks use 25,000. you will be saving them $30,000 a year or more. we have early adopters that are using 35,000 gallons a year. so that is a one year payback. the new engines are coming out, jim. >> right, now they have been delayed. they haven't had the right trucks.
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>> most truckers want a 12 or 13 liter engine. and that is the bad news for 2013. >> you know i think it is cleaner or cheaper. that country is stronger. i waited in a couple of gas lines for the next two weeks. we are a little ridiculous in this country. where is the back-up fuel? if we had add least for trucks, a network that was duplicative but also separate network? you would at least not had the gas lines for diesel trucks. >> we had 51 stations and we are able to get them on in a day and a half. we had to use back up generators as well. you are right. we are starting to hear from the shippers. they want fuel diversity. they are worried about importing all of this stuff.
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>> why doesn't the military? >> well, they do. and they are working on all sorts of things to do this, they see this as a problem as well. >> what do you think is the reason why we never hear from the administration. we never hear the following, which is you know what, we have a lot of nat gas and it is better than oil. let's use more of it. >> the president said it one time in front of one of our trucks. that is what i need. we really don't need government laws and incentives. we have economics on our side. we have ge, we have caterpillar. you're getting the big players. every equipment truck manufacturer in the world has got the product or announced it. that is a big change from a couple years ago. the big players are getting into the game. all we need from the government is to talk about using our own natural resources. >> where is chesapeake these days?
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what have they done lately? >> i talked to aubrey last night and he was in florida. and so i thanked aubrey last night. they have been a great partner. >> sandy cutler who is the ceo of the company, said he fully expected that we would have something that made it so that we could fill our cars up and hook them up to the natural gas line. after this most recent hurricane, a lot of people are hooking up generators to the gas lines. when can i hook up a pump? >> i had one for years. for a dollar a gallon. ge is working on that right now. it is a couple of years out. you are right. think about it, the infrastructure issue goes away
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and we have natural gas in 70 million homes in the united states. it is natural. >> i feel better. i got bummed. i'm a head game player when it comes to a cleaner fuel. you know what i think it is patriotic. >> stick with us, jim. >> clean energy fuels. stay with cramer. >> coming up. cliff notes. time is running out with the market and your money hanging in the balance, cramer is taking action. honeywell ceo dave cote talks about his role in the fix the debt campaign and his take on whether we can avoid the fiscal cliff. and later, ready for takeoff? shares of boeing have been caught in the holding pattern this year. could the flight path be changing or will fiscal cliff
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concerns keep it grounded? all coming up on "mad money." ally bank.
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why they have a raise your rate cd. tonight our guest, thomas sargent. nobel laureate in economics, and one of the most cited economists in the world. professor sargent, can you tell me what cd rates will be in two years? no. if he can't, no one can. that's why ally has a raise your rate cd. ally bank. your money needs an ally. when you hear people going into doom and gloom mode about the fiscal cliff, they are talking about multiple things. our government has made it so
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that a whole bunch of negatives will happen on the same day. spending cuts could put over two million american jobs at risk. oh, and speaking of the debt ceiling. we are getting close to hitting that again. why are we not freaking out? one of the big reasons is because we are seeing genuine leadership from the business community. a group of executives including cramer fave dave cote have banded together to create the campaign to fix the debt. the only way we are going to solve this problem is by cutting spending and increasing taxes in a responsible and reasonable way. you know i think honeywell is a tremendous industrial company.
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tonight i want to talk to dave cote about the fiscal cliff because he is on the steering committee of the fix the debt campaign and he is spearheading it. welcome back to "mad money." >> always great to see you. >> welcome to the radical middle. >> yeah, hey, radical middle. that is what it is. when we talk about rise above into the radical middle. you are seeing the president tomorrow. what are you going to say to him? >> we have the worst debt problem we have had in over 200 years, since the revolutionary war, with the exception of ww ii. democrats and republicans have to work together. we have to come up with a $4 trillion plan, and with a simpler tax system with entitlement programs that have
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to get reformed. and some discretionary spending cuts, and they need to get this done. i believe that if they were to do something like go off the fiscal cliff, it could promote a much bigger crisis and recession. this could be a conflagration that we can't predict where it is going to go. that is silly. right, on the other side of it, i think there is a potential for a robust recovery that economists are also underestimating. there are a lot of people like me who are saying let's wait and see. the world's big democracies are gridlocked over debt. we are going to wait and see what happens. if all of us could look at it and say they are governing. they understand compromise is synonymous with governing, not
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with giving in. >> would you explain to the president that the last time around, the ceos that did the best were the ones that fired the fastest? >> what is happening in our situation is what -- every company has attrition. retirements, leave for another job. well, we attrit about 800 people a month. we hire back only 100 or 200 a month. >> and you have one of the best five year plans of any company out there. >> there is not enough gdp growth to support it. you go i'm not sure what is going to happen next month. if they do something silly, i don't want to hire a bunch of people that i have to lay off. i'm going to wait and see. the same thing happens on capital expenditures.
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>> david gregory said, do you think that the ceo's can play and important role? >> especially with our fix the debt effort which you are familiar with. please sign the petition, 200,000 signatures on this already. as people want to rise above the politics and get something done. but if we look at our fixed debt effort, we have over 100 ceos at this point all of whom are saying the same thing. time to be responsible. it is time to be the biggest, most fiscally responsible company in the world. >> can you take down in your unbelievably good campaign to fix the debt.
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fall, what are you rooting for here? increased cost of living, slower wage growth. >> yeah, that is very true. >> so, how do we out the people who are in favor of increased cost of living, lower stock prices, slower wage growth? what pressure do we put on them? well, i'm looking for the radical middle. i have always felt 70% of the country is in the middle. why don't you do the right thing? you know, stop your ideological arguments and get the right thing down for the country. that's what happens. if we kick the can down the road, i think we have an under 2% gdp growth economy for as far as you can see until the crisis really hits. this problem will get solved. one is the bond market will force us to do it and people will say the bond market, well
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if long-term rates go to 5% on government bonds your mortgage is going to be 8% and your car loan is going to be 12%. >> it's reasonable to think that they will come after us and -- right? the chinese. >> all of this stuff is true. we have low rates now. this is the sort of thing that is true, until it is not. >> now, one last question, there is a common refrain i hear, people know that i have some means. they say if we tax guys like you, it doesn't raise a lot of money. i say listen, i'm part of the piece that you raise. this arguments that if we raise rates for individuals, that is not going to solve the problem? >> it is not going to solve the problem. i always say look, when it comes to means testing medicare, medicaid, means testing social security, having us pay more, i
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understand all of that. but don't confuse that with an actual financial solution to the problem. we benefit the most, we need to make sure that we pay more. don't confuse that with the financial solution. >> it takes us off the track. >> we need $4 trillion. i looked at the six tax rates broken out. the top two rates if you wanted to solve the financial issues just by taxing those two rates, you have to take 108% of their income. even your buddy lenin or mao would consider that confiscatory. >> they thought about this deeply. and they wouldn't go with that. i'm proud that you are the guy going down to washington tomorrow.
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that is dave cote, the chairman and ceo of honeywell. for the fix the debt campaign and the american who understands the crisis that we are in. coming up. the clock is ticking. call cramer to find out how to fire away at cramer on the lightning round. can he withstand your onslaught of stocks? and later, ready for takeoff? shares of boeing have been caught in a holding pattern this year. but could the flight path be changing or will fiscal cliff concerns keep it grounded? cramer is taking out his technical tool set to read the plan. coming up on "mad money."
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it is time for the lightning round.
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>> i know you like gld, but i'm looking at sandstorm. >> i know that group, these are the ones that do, how would we describe them? these guys lend other miners money and they are good, but remember, if gold goes down, they won't be drilling. let's go to jerry in ohio. >> i would like to know about qcom. >> magnificent quarter, doing well, getting respect. may i add cisco reported a good number today and it is going to
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help broadcom which has been pulled down. i need to go to dave in california. >> booyah from sunny california. i'm into high yield dividend paying stocks. >> we like that one very much. it has a 5% yield. you don't get as much in return. i got to tell you, i think that stock is real good. let's go to will in new york. will? >> how you doing? >> real good, how about you there, chief? >> not too bad. i want to ask you about soda stream. it released earnings last week. wal-mart says it sells great in stores. it is getting nothing but good press.
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the market beats the stock up like it's vick behind the eagles 0-line but could the stock be in for a second wave? >> first of all, it hasn't been concussed yet. second it is not a major league stock. it is the wrong stock for this environment. >> susan. >> how do you feel about exel? >> i like exel. and by the way, another one of -- another one of our specs, dbax, nice move today. remember, i am in favor of speculation as long as it's only one small piece of your portfolio. and that is the conclusion of and that is the conclusion of the lightning round. but whetr he's climbing everest,
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everybody is freaking about about washington. the fiscal cliff is a man made problem that congress and the president created. if they would stop squabbling with each other they could solve this thing with the stroke of a pen. i'm not trying to minimize the scale of the problem. it could send our economy back into a recession. i'm going to keep going. people are saying why is this stock and that stock down. it is always the same. it is because the fiscal cliff. it is killing stocks. but you know what? some of the stocks that would be
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the worst hit, the defense contractors, are telling a different story. as a big part of the cliff, they are telling a different story. i'm talking about boeing. these stocks say that they have been down for so long that it is their time. that is why we are going off the charts to look at boeing. we are doing it with my colleague at realmoney.com. the paid sister site to thestreet.com. if it were so bad you would think it would be there. he thinks the stock is headed higher not lower.
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this is a pictograph. he thinks it's a thing of beauty. i see this. he says don't look at it like that. not only has the stock gone higher, but it has done so since the election. the big boys make boeing seem attractive. it is a strong floor of support under $69. it is going to give you what i call downside protection. the stock is trading above all of its key moving averages. it has broken out of the ten
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day. it has broken out of its 50 day moving average. most important it has broken out of its 200 day moving average. when it is trading below this line they will write it off as a loser. as of today boeing has made three consecutive closes and could attract many more buyers. it is an up stock.
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there is another reason, it has to do with the indicator at the bottom. it is the moving average convergence/divergence line, the macd. this is a momentum indicator. right now it is being told it is ready to roar. it is making the cross over. the black line crosses over the red line. these have been pretty reliable buy signals. we got the same crossover back in june, right before boeing rallied like crazy and we had it at the beginning of october. when i worked with karen cramer, she used to print out the macd's every day and say find me one that is worth buying.
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and i have to agree with him. they do a decent amount of defense business. some of that is with other countries. they are not governments they are commercial air place players. right now we have a tremendous goal. they are now on track for the first time since 2006 and not only were the shipped off to customers, even if we don't bridge the fiscal cliff, i
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believe that people. you might think that the schedules woe go into effect on january 1st, you but a number of them are performing quite well and boeing is the best of them. with the chart that suggested that the stock is headed higher. i think lang is right. and we are anxious to buy more if we get back to the $69 floor. stay with cramer. n you take a c. ...at the best schools in the world... ...you see they all have something very interesting in common. they have teachers... ...with a deeper knowledge of their subjects. as a result, their students achieve at a higher level.
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let's develop more stars in education. let's invest in our teachers... ...so they can inspire our students. let's solve this. on gasoline. i am probably going to the gas station about once a month. last time i was at a gas station was about...i would say... two months ago. i very rarely put gas in my chevy volt. i go to the gas station such a small amount that i forget how to put gas in my car. [ male announcer ] and it's not just these owners giving the volt high praise. volt received the j.d. power and associates appeal award two years in a row. ♪
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this morning we saw terrific numbers from home depot and dick's sporting goods. much of what is good can be placed at the feet of two remarkable ceo's who are worthy of significant praise. home depot showed a remarkable increase. the average numbers of home depot show big changes, people. blake, i like this guy, instead he said the strength was the start of the path of healing of the housing market. home depot performed incredibly
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well when the housing market was awful. you got to love a guy who says you know what, i'm citing the housing cycle. even better, home depot will be the destination for repair from hurricane sandy. home depot was the possible gap which was why the stock got hammered. sure enough one of the best performing stocks got better. now dick's is a terrific story. when things are slowing down in the economy, you don't buy expensive sneakers. dick's delivered a terrific same store sales game. a somewhat related company, cabela's, cited the warm weather
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for their outerwear selections. however, it does make you feel better about what dick's is up to. the pin action from the success of home depot and dick's, let's consider for a moment. that is a justifiable consequence of home depot's gains. the common themes are awesome management. i salute home depot and dick's sporting goods for the returns they have given shareholders for their companies. ♪ hallelujah stick with cramer.
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go to stamps.com/tv and never go to the post office again. >> okay so cisco reported a good number and did not guide down. i thought when i saw home depot do that beautiful number i thought that could lead the market. in the end, everything is put through one prism and that is washington. and it makes it almost